ITA No.6096/MUM/2026

Parties Involved

Facts Summary

The assessee, RAJNISH SRIKISHAN GUPTA HUF, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) under section 250 of the Income Tax Act, 1961, for the assessment year 2016-17. The appeal was based on the reopening of the assessment under section 147 of the Act, which was initiated on the basis of information received from the Investigation Wing via the Insight Portal. The assessee disputed the addition of Rs. 52,94,120/- made by the Assessing Officer under section 68 of the Act as unexplained cash credit from undisclosed sources. The assessee argued that the credit entries were due to the recovery of outstanding loans from Kasturi Commodities Pvt. Ltd. and not from undisclosed sources.…

Legal Issues

• 1. Validity of Reopening under Section 148
• 2. Reassessment Based on Borrowed Satisfaction – Insight Portal Data, No Independent Verification
• 3. No Nexus Established between Rs. 52,94,120/- and Alleged Accommodation Entries
• 4. Appellant was the Lender, Repayment Cannot be Treated as Unexplained Cash Credit
• 5. Addition Based on Accommodation Entries, Expression Left Undefined and Unexplained
• 6. Section 115BBE Invoked Without Identifying the Specific Applicable Section

Judgment Outcome

Decided in favour of Assessee.

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